At WIRED’s “The Big Interview” occasion earlier this month, Cost Plus Drugs founder and “Shark Tank” star Mark Cuban was requested why he does not make extra revenue at his low-price drug firm.
“You are fairly clear that you’re not doing this for altruistic causes — you are working a enterprise,” famous the occasion moderator.
“Nicely, I may make more cash,” Cuban mentioned, to laughs within the crowd. “We’re a public profit company. However how a lot f—ing cash do I would like?”
“I am not attempting to go to Mars,” he added, with an apparent dig at his billionaire rival Elon Musk.
Associated: Mark Cuban’s Startup Is Sending Its First Batch of Essential Meds to Hospitals Facing Shortages
What Is Price Plus Medication?
Mark Cuban Price Plus Drug Co. is an internet pharmacy co-founded by Cuban and radiologist Alex Oshmyansky to disrupt the pharmaceutical business and decrease drug prices. It launched in January 2022 and affords greater than 2,300 prescription medicines and supply.
How Does Price Plus Medication Worth Its Drugs?
On the corporate web site, Cuban outlines how the worth construction works: Price Plus marks the bottom value up by 15%, after which provides on the precise value that the pharmacy fees them to organize the remedy.
So a drug like Albendazole, for instance, which treats ringworm and prices round $113 elsewhere, in response to Drugs.com, is $35, as per the letter. (Cuban wrote that the corporate paid $26.08.)
“Many individuals are spending loopy quantities of cash every month simply to remain wholesome,” Cuban wrote. “No American ought to should endure or worse – as a result of they can not afford fundamental prescription medicines.”
Associated: How Mark Cuban Forced the Biggest U.S. Pharmacy to Upend Its Business
What Is a Public Profit Company?
A benefit corporation—often known as a B Corporation—has shareholders who personal the corporate, not like a non-profit. So being profitable is the purpose, simply not the entire level.
Whereas non-profits (or not-for-profits) serve a public profit and do not make any income, profit firms need to earn money whereas nonetheless serving a better objective than itself “and a need for the company to assist make the world a greater place,” according to Rick Bell of Harvard Enterprise Providers.
